Heritage Direct Savings Account Terms and Conditions

This disclosure contains information about terms, fees, and current interest rate for Heritage Direct Savings Account.

Welcome to the HERITAGE DIRECT SAVINGS ACCOUNT from Heritage Bank N.A., the account that is managed electronically through a (linked) checking account at any U.S. Financial Institution and pays a premium rate of interest.

Account Opening

To open this account you must deposit at least $1,000.00 into the account. You may authorize us to withdraw funds from the linked checking account on your application, mail us a check or send us an incoming wire transfer. Your linked account must be a checking account and cannot be a money market account, even if you have check-writing privileges with that account.

For your security we will verify that you have access to the linked account. We will put a temporary hold on your deposit(s) for up to 10 business days or until you complete our verification procedures, whichever is longer.

Variable Rate Information

The Annual Percentage Yield is currently 0.25% as of Sunday, August 2, 2015. The rate is subject to change at our discretion and may change daily.

You must maintain a daily collected (available) balance of $1,000.00 in the account each day to obtain the disclosed annual percentage yield. Interest will be compounded monthly and will be credited to the account monthly. If you close your account prior to interest being credited and follow our closing procedure, you will receive your accrued interest.

Interest begins to accrue no later than the business day we receive credit for the deposit of non cash items (for example, checks). We use the daily balance method to calculate the interest on the account. This method applies a daily periodic rate to the principal in the account each day.

Check our website at: www.heritagebankna.com for the most current rate information

Account Fees and Limitations

A monthly service charge of $15.00 will be assessed in any month the balance of your account falls below $1,000.00 on any given day.

Federal Banking Regulations limit the number of preauthorized withdrawals. You may make only six (6) of these withdrawals – examples are: Telephone and Online banking transfers, and ACH payments to third parties. If you surpass this limitation two months in a rolling 12-month period, your account will be charged $30.00. If you surpass this limitation three times during a rolling 12-month period, Federal Banking Regulations require that your account be closed. Heritage Bank will not open another savings account for you for at least 12 months after closure.

If your account has 24 months without at least one deposit or withdrawal initiated by you, the account will go dormant. There will be a $10 monthly service charge as long as your account is dormant. Funds in abandoned accounts will be sent to a state agency, in accordance with state law. After the funds have been sent to the state, we are not responsible for them. If you choose to reclaim the funds, you may apply to the state agency. We reserve the right not to send statements on accounts we consider dormant, subject to state law.

Deposits: You may make deposits to your HERITAGE DIRECT SAVINGS ACCOUNT by transferring funds from another Heritage Bank account, requesting a withdrawal from your linked checking account via Online Banking (may take up to three business days), by mailing a check, or by sending an incoming wire. DO NOT SEND CASH.

Deposited checks must be payable to you and have your HERITAGE DIRECT SAVINGS ACCOUNT number on them. It is your responsibility to verify that your deposit reaches us and that we know where you want your deposit credited. If we do not receive your deposit or are not sure to which account it should be credited, you will be responsible for any loss that results.

Withdrawals: You may withdraw funds from your HERITAGE DIRECT SAVINGS ACCOUNT by accessing your account via our Online Banking and 1) transferring to an existing Heritage Bank account or 2) clicking “Transfer Out” to transfer funds to your linked checking account. Withdrawals may take up to 3 business days to reach your linked account from the date of your request. We reserve the right to require written notice, 7 days in advance, before we allow you to withdraw from your account.